Penalty of  Rs. 16.09 lakhs for not reporting dues of 18.58 Lakh in MSME – I

 

According to the provisions of the Companies Act, 2013, companies dealing with micro and small enterprises must submit a half-yearly return to the Ministry of Corporate Affairs detailing outstanding dues and reasons for any delay in payment in MSME Form I.

Filing MSME Form I is a straightforward process with no associated fees. Ensure compliance by submitting the form by 30th April 2024 for transactions from October to March, and by 31st October for transactions from April to September.

Failure to file Form MSME I or providing incorrect/incomplete information can result in penalties under Section 405 of the Companies Act, 2013.

In recent case, Blissful Garments Pvt. Ltd. faced penalties totaling to Rs. 16.09 Lakh for failure to file the MSME Form I to report MSME dues of Rs. 18.58 Lakh, as highlighted by the recent adjudication order from the ROC Kerala.

This case serves as a stark reminder of the financial implications of non-compliance. Filing MSME Form I is a straightforward process and doesn’t involve any fees. Don’t risk hefty penalties – ensure timely filing by the deadline of 30th April 2024 for the period from October to March.

Have you ensured your company’s MSME Form I filing is on track?

Stay informed, stay compliant.

 

The copy of the order is as under:

1714299422071